Home Financing in a Foreclosure-Heavy Market

In today's housing market, foreclosures are at a high that hasn't been seen since 1979. Seven percent, or roughly one of every 11 homes, is currently in foreclosure. According to the Mortgage Bankers' Association, 6.35 percent of homes are in delinquency but not yet in foreclosure.

The housing crisis is happening everywhere -- from Indiana to Texas and Maine to California. Though we most often hear about record foreclosures in California and Florida, a brief internet search will show you it truly is not limited to any particular region or state.

The housing market woes do not just affect potential home buyers. The mortgage brokers themselves are feeling the crunch. In Massachusetts, approximately 80 percent of the brokers who were in business at its peak (about two years ago) have now left or will leave the housing market by the end of June 2008. Those that are left have had to severely cut back and make changes in order to survive (letting go other personnel, working more hours, selling fewer homes).

Qualified buyers are typically seen as those who have credit scores of above 680 (FICO scores range from 350-800), with good, steady jobs and incomes. Today, many banks, feeling the burden of too many loans gone bad, do not want to give loans to anyone with a credit score below 720.

Also gone are the days of easy-to-get adjustable rate mortgages. Banks have learned that market will not always be in an upswing and not everyone can afford a home mortgage.

If you do end up in foreclosure, it will most likely be at least five years before you'll be considered for bank financing again. In addition, you'll need to have a credit score of at least 680 and at least a 10% deposit.

But what if you have a good deposit now and you need a home now, not five years down the line or whenever the housing market picks back up? Do you have any options? In short, yes.

There are actually lots of people who are willing to do owner financing. If you see a For Sale By Owner sign, it's a good idea to check it out and see what kind of a deal they would be willing to make you.

Creative home financing options can help you and your family get into a house sooner, and help the owner get out of their home sooner. After all, with banks so hesitant to give loans, FSBO homes aren't going to have a very good chance of selling, either. Creative financing can help owners and buyers find mutual satisfaction.

In addition to looking for FSBO homes, there are other things potential home buyers can do to increase their chances of getting a home. To start, save up and get as much cash together as you can for a down payment.

When home owners are faced with letting their homes sit on the market for years (because no bank will give a buyer a loan) or taking a nice chunk of money up front and then a steady income from monthly payments for a number of years, they're going to be tempted.

Having that nice down payment also can help the current home owners get into their next houseóa point that should be made to them in case they haven't thought of it. There are also experts available who know the ins and outs and strategies of creative home financing.

Another version of creative home financing is a land contract. This is along the lines of what we've already talked about, but with some sellers, they may be willing to accept a much lower down payment, spread your payments out over 40 years instead of the typical 30, and negotiate with you on the interest loan.

Check with your friends and family. Sure, there are reasons to be cautious when lending and borrowing money with relatives and friends. But if you know people who could probably spare the money for a down payment, and you can offer them a higher interest rate than they're getting by having their money sit at the bank, it could be a very attractive option for both of you.

Do you have other property? If you have other property already, you may be able to get a loan from that property to put towards a down payment on new property. It's worth thinking about.

The next idea is one you should think very cautiously about, but it is an option. Particularly if you are dealing with a FSBO situation, perhaps you could put part of your down payment on your credit card. This should really only be contemplated if you're going to be able to pay that amount off on your card very quickly (say, if you're expecting your tax refund or stimulus check) because credit card interest rates, as well all know, are ridiculously high.

As is true any time you are looking to take on debt, you need to be cautious. The banks have learned their lesson, so they're not going to be as easy to finance a home with for some time.

You, too, as the potential home buyer, need to be careful. Think through just how much debt you can take on. But do not let the current market discourage you from moving forward with home ownership plans. You may have to look a little harder, search a little longer, and maybe keep your dream house away for another few years. However, with the right spirit, intentions, planning, and creativity, you will find a home financing option that works for you and the seller.

Cory Shrader writes for the Liberty Home Sellers website. We buy and sell homes in north and central Oklahoma. We provide owner financing on many of the homes we sell, and we occasionally offer handyman specials to real estate investors. Be sure to fill out the relevant forms on our website, so we can help you find the kind of home you are looking to buy. Learn more about available Stillwater Oklahoma homes at: http://www.LibertyHomeSellers.com

10 Most Recent Articles Written by Cory Shrader

Understanding The Due On Sale Clause On Your Home Mortgage
Written by: Cory Shrader |
Distributed: 2009-02-04 |
Word Count: 1835 |
Page Views: 6822
| Votes: 19 |
Rating: 3.42
The Due On Sale Clause is among the most frequently misunderstood
and most-feared legal terms in American contractual law. In this
article, we are going to take a look at what it is, what it is
not, and how to avoid violating it.

Buying And Selling a Home During a Credit Crunch
Written by: Cory Shrader |
Distributed: 2009-01-27 |
Word Count: 1580 |
Page Views: 4635
| Votes: 15 |
Rating: 2.07
As President Obama is taking office, many people who had hoped to
buy a home in 2008 or 2009 are stressing as to whether a bank
will be found, which will finance a home purchase.

Saving Time and Money Working with a Real Estate Buyer's Agent
Written by: Darrell Self |
Distributed: 2010-05-06 |
Word Count: 926 |
Page Views: 2627
| Votes: 5 |
Rating: 0.80
Consumers interested in residential real estate too often
make the mistake of answering a "homes for sale" ad rather
than carefully hiring a buyer's agent to protect their
interests and to help them make the best purchase for their
needs, tastes, and finances.

How To Buy Real Estate in Mexico
Written by: Fernanda Rodriguez |
Distributed: 2009-10-15 |
Word Count: 1059 |
Page Views: 3217
| Votes: 3 |
Rating: 3.00
Buying property in Mexico has become more popular every
year. Whether you would like to purchase a vacation home or
are planning on retiring there, owning real estate in Mexico
is easy and safe. With its incredible natural resources,
rapidly improving economy and modern facilities and
infrastructure, Mexico is the place to make your dream home
a reality. This article will answer most of your questions
about buying real estate in Mexico.

Tips About Vacation Villas In Chianti, Tuscany
Written by: Teresa Cambi |
Distributed: 2009-10-15 |
Word Count: 512 |
Page Views: 2403
| Votes: 3 |
Rating: 1.67
Travelers who enjoy wine, food, beautiful scenery and a
relaxed pace will love Chianti. Not only is the region home
to its namesake wine which is one of the most beloved and
popular wines in the world, but it is also home to some of
the most characteristic farmhouses and villas in Tuscany.

Find The Right Property For Sale In Tuscany
Written by: Alice Migliorini |
Distributed: 2009-10-14 |
Word Count: 529 |
Page Views: 2554
| Votes: 4 |
Rating: 2.50
All the basics as far as real estate are essentially the
same. If you are buying a condo in Miami or a property in
the rolling hills of Tuscany you follow the same road. The
road just meanders a little bit more when you deal with
purchasing a house in Italy rather than the US.

Sarasota Florida: Top Ten Reasons to Visit in 2009
Written by: John C Allen |
Distributed: 2009-08-04 |
Word Count: 877 |
Page Views: 3579
| Votes: 15 |
Rating: 2.40
An abundance of visitors from around the world visit
Sarasota each year to enjoy all of the amenities this small
city on the Gulf Coast of Florida has to offer. Each year,
Sarasota's warm climate attracts "snowbirds" down to the
Sunshine State for its high season from January through
March. Visitors and residents alike enjoy the city's
internationally recognized cultural amenities matching those
of the nation's largest cities. A world-class destination,
Sarasota, Florida has many reasons to live, work and play in
this gorgeous coastal setting.

Longboat Key Florida: How to Make the Most of Your Visit
Written by: John C Allen |
Distributed: 2009-07-30 |
Word Count: 625 |
Page Views: 3620
| Votes: 12 |
Rating: 2.92
Longboat Key Florida is an 11-mile long island that borders
the Gulf of Mexico to its west and the calm waters of
Sarasota Bay on to its east. The 8,000 permanent residents
of Longboat Key live in a variety of residential styles from
condominiums, townhouses, small single-family homes to
luxury waterfront estates. While providing activities such
as beachcombing, walking, swimming and fishing, the Key is
manicured and secluded allowing a relaxing lifestyle.
Longboat Key is known throughout the world for its
outstanding beaches, sweeping water views, excellent dining,
great weather, luxury lifestyles and don't forget the
sensational sunsets.

Lake Toxaway Homes for Sale - Your Dream Home Away From It All
Written by: Alan Nilen |
Distributed: 2009-04-30 |
Word Count: 472 |
Page Views: 2618
| Votes: 5 |
Rating: 3.60
Lake Toxaway NC provides quiet living away from it all, with
natural beauty wherever you look. It's the perfect place to
live, to retire, or just to own that summer home that takes you
away from the hustle of your busy life.

Understanding The Due On Sale Clause On Your Home Mortgage
Written by: Cory Shrader |
Distributed: 2009-02-04 |
Word Count: 1835 |
Page Views: 6822
| Votes: 19 |
Rating: 3.42
The Due On Sale Clause is among the most frequently misunderstood
and most-feared legal terms in American contractual law. In this
article, we are going to take a look at what it is, what it is
not, and how to avoid violating it.

Understanding The Due On Sale Clause On Your Home Mortgage
Written by: Cory Shrader |
Distributed: 2009-02-04 |
Word Count: 1835 |
Page Views: 6822
| Votes: 19 |
Rating: 3.42
The Due On Sale Clause is among the most frequently misunderstood
and most-feared legal terms in American contractual law. In this
article, we are going to take a look at what it is, what it is
not, and how to avoid violating it.

Is Downtown Condo Living For You?
Written by: Lynn MacKenzie |
Distributed: 2008-02-22 |
Word Count: 462 |
Page Views: 5284
| Votes: 10 |
Rating: 1.70
In the last year there has been an increase in the number of
buyers moving into downtown condominiums. With the closeness of
amenities and affordable prices it's easy to understand why
buyers want to live in a condo for sale in Calgary. Many buyers
see condo living as an attractive option because of the traffic
congestion nightmares, the longer commuting times and the ever
increasing construction of the Calgary roads.

Residential Builders Need to Re-create the Leave it to Beaver Lifestyle
Written by: Catherine Wilson |
Distributed: 2006-07-31 |
Word Count: 566 |
Page Views: 5037
| Votes: 17 |
Rating: 2.41
Do you ever wonder where the neighborhoods went that held the
picket fences, window boxes brimming with flowers, uniquely
designed houses, sidewalks, canopied streets shaded with 100 year
old oak trees, front porches, swings and homes placed close
enough so that neighbors can be neighbors? In our fast paced,
electronic, motorized world a simpler way of live is one that
many desire.

Finding Irish Castles for Sale
Written by: Patricia G. McKinney-Lins |
Distributed: 2009-01-20 |
Word Count: 635 |
Page Views: 4719
| Votes: 12 |
Rating: 2.00
It is possible to find an Irish castle for sale. If you are
determined, patient, and have the resources, you can buy a castle
in Ireland. If you do the research and are committed to the
project, you can own a very special property!

Buying And Selling a Home During a Credit Crunch
Written by: Cory Shrader |
Distributed: 2009-01-27 |
Word Count: 1580 |
Page Views: 4635
| Votes: 15 |
Rating: 2.07
As President Obama is taking office, many people who had hoped to
buy a home in 2008 or 2009 are stressing as to whether a bank
will be found, which will finance a home purchase.

Is Renting Better Than Buying, In This Economy?
Written by: Mark Felder |
Distributed: 2006-07-19 |
Word Count: 315 |
Page Views: 4176
| Votes: 9 |
Rating: 1.89
With the real estate market changing dramatically in the past few
years and some regional markets more than doubling in property
value, is it a good time to buy property? Consider the factors:
real estate has increased in value while interest rates have
dropped to record lows.

Mississauga, Ontario Real Estate and Trends
Written by: Brayden Bassett |
Distributed: 2007-06-14 |
Word Count: 721 |
Page Views: 4104
| Votes: 6 |
Rating: 1.83
The city of Mississauga, Ontario, Canada, is the sixth largest in
that nation. With its relative proximity to the bustling city of
Toronto, the population there has just exploded over the past
several decades. The standard of living here in Mississauga is
high, and therefore there are a lot of amenities which have
flourished that provide the residents of the city with a
fantastic lifestyle.

Ten Questions to Ask Your Realtor When Buying a Home
Written by: Craig Elliott |
Distributed: 2007-10-10 |
Word Count: 619 |
Page Views: 4092
| Votes: 9 |
Rating: 1.67
When buying a home, the questions you ask your realtor are
crucial. Your realtor is assisting you with an important
financial matter, so you need to be sure that the decision is in
your best interest. The following are ten questions you should be
asking as you are working with a realtor or before you hire them
to assist you.

Highest Ranked "Real Estate" Articles

Lake Toxaway Homes for Sale - Your Dream Home Away From It All
Written by: Alan Nilen |
Distributed: 2009-04-30 |
Word Count: 472 |
Page Views: 2618
| Votes: 5 |
Rating: 3.60
Lake Toxaway NC provides quiet living away from it all, with
natural beauty wherever you look. It's the perfect place to
live, to retire, or just to own that summer home that takes you
away from the hustle of your busy life.

Understanding The Due On Sale Clause On Your Home Mortgage
Written by: Cory Shrader |
Distributed: 2009-02-04 |
Word Count: 1835 |
Page Views: 6822
| Votes: 19 |
Rating: 3.42
The Due On Sale Clause is among the most frequently misunderstood
and most-feared legal terms in American contractual law. In this
article, we are going to take a look at what it is, what it is
not, and how to avoid violating it.

Why Parties Engage in Real Estate Litigation
Written by: Austen Koberstein |
Distributed: 2007-01-09 |
Word Count: 712 |
Page Views: 3411
| Votes: 8 |
Rating: 3.25
Owning a home is a big part of the American Dream. For many
people, this will be their ultimate investment. Therefore, it is
no wonder that homeowners do not blink twice when it comes to
protecting their most valuable possession. These days, real
estate litigation is to the property owner, what the mamma bear
is to her cub.

Closing on Your Home
Written by: Clint Wooley |
Distributed: 2007-01-08 |
Word Count: 430 |
Page Views: 3191
| Votes: 11 |
Rating: 3.18
The closing process of purchasing a home can be one of the most
confusing parts. This article is an attempt to help first time
home buyers understand the basics of the process to settle fears
and anxieties about the process.

Longboat Key Florida: How to Make the Most of Your Visit
Written by: John C Allen |
Distributed: 2009-07-30 |
Word Count: 625 |
Page Views: 3620
| Votes: 12 |
Rating: 2.92
Longboat Key Florida is an 11-mile long island that borders
the Gulf of Mexico to its west and the calm waters of
Sarasota Bay on to its east. The 8,000 permanent residents
of Longboat Key live in a variety of residential styles from
condominiums, townhouses, small single-family homes to
luxury waterfront estates. While providing activities such
as beachcombing, walking, swimming and fishing, the Key is
manicured and secluded allowing a relaxing lifestyle.
Longboat Key is known throughout the world for its
outstanding beaches, sweeping water views, excellent dining,
great weather, luxury lifestyles and don't forget the
sensational sunsets.

Are You Suffering From Anemic Profitosis?
Written by: Donna Robinson |
Distributed: 2007-03-09 |
Word Count: 794 |
Page Views: 3233
| Votes: 7 |
Rating: 2.57
Is your investment income looking a bit pale and fatigued? Do you
become nauseated at the site of your profit and loss statement?
Are you itching to sell properties that are losing money? Chances
are you're suffering from a lingering case of anemic profitosis.

How You Can Benefit from All The Foreclosures
Written by: Bob Johnston |
Distributed: 2008-11-05 |
Word Count: 957 |
Page Views: 2704
| Votes: 13 |
Rating: 2.54
Foreclosures are at an all time high and people are getting
scared. One look at the markets over the last few weeks will tell
you the tale. Is it possible that a person could actually prosper
in times like these? Are there opportunities in the foreclosure
market that we are missing? It is possible; there have been many
people who started their fortunes during tough economic times.